China's "Hot Money"

Why is this chart important? Well, China may now be sitting on a inflationary macro cycle about to get out of control.

The Financial Times has reported that China’s central bank reported that companies and individuals sold Rmb 684 billion ($109 billion) worth of foreign exchange and bought an equivalent amount of Chinese currency in January 2013 --- a record for a single month.

Premier Wen Jiabao: Slower economic growth in China to reduce inflation risks

 

Beijing to Slow Growth 

BEIJING—China's premier said the government wants slower economic growth to avoid inflation and to restructure the economy, even as much of the developed world is struggling to accelerate expansion.


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China food prices

China's farm produce prices slightly down last week: MOC

BEIJING - In the week ending February 13, farm produce prices in China declined slightly for the first time this year, the Ministry of Commerce (MOC) said in a report released on Tuesday.

As the week-long Spring Festival holiday ended, abundant supply and weakening demand had brought down vegetable prices last week, said the ministry.

Compared to a week ago, the wholesale prices of 18 staple vegetables and 8 aquatic products went down 4.3 percent and 0.9 percent, respectively, it said.


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